Axie Infinity Price Forecast – Why AXS Could Soon Drop Below $3

Highlights:

• Axie Infinity is trading close to the monthly low at $3.221
• A drop through the $3.221 support could push AXS to prices below $3
• The sell-off across the market could trigger such a selloff

Cryptocurrencies are selling off today, and Axie Infinity is no exception. When going to press, Axie Infinity had dropped by 11.77% to trade at $3.31. The accelerated selloff is mainly linked to Bitcoin’s price action. Axie Infinity, like other altcoins, follows Bitcoin’s price changes. Currently, Bitcoin is on a downward trend and is approaching 80k, further solidifying the negative outlook in Axie Infinity.

Axie Infinity Price Under Pressure from Bearish Macro Sentiment

The current macroeconomic setting suggests that Axie Infinity and other high-risk assets could continue to drop. Several elements are leading to instability, the key being geopolitical and economic changes in the global market.

The introduction of tariffs by US President Donald Trump has done nothing but put the market in a difficult situation. One of the key factors investors are watching today is that tariffs on Mexico, Canada, and China are coming into effect today. The response from these nations has also already started and could pressure cryptocurrencies like Axie Infinity even further.

#Trump threatens to disrupt North American #FreeTrade – one of the world’s largest trading blocks; as #GlobalMarkets brace themselves for a potential tailspin, it is clear- 25% tariffs on all imports from #Canada #Mexico-is a direct #tax on #Americans @FrancoisF24 @France24_en pic.twitter.com/fnmXv4JSbr

— Emily Ragobeer (@EmilyAR_) March 3, 2025

Market Skepticism Over Trump’s Crypto Policies Pushing AXS Lower

Aside from macroeconomic instability, the bullish sentiment towards cryptocurrency policies under the Trump administration is weakening. Even though Trump recently announced plans for a cryptocurrency reserve, the market’s response has not been supportive. Rather than triggering a sustained uptrend, the market has shifted to another correction phase, now making the administration’s policy on digital assets particularly unclear.

Jaw-dropping corruption in the US:

Trump's billionaire crypto czar is heavily invested in a fund whose top 5 holdings are the 5 in the US government Crypto Strategic Reserve.

Mere hours before Trump announced it, someone bought $200 million in Ethereum & Bitcoin on 50X LEVERAGE pic.twitter.com/LQWZceeTvB

— Ben Norton (@BenjaminNorton) March 3, 2025

This growing loss of confidence worsens the existing bearish momentum, further straining Axie Infinity and other altcoins. Considering the uncertain political and economic climate, the chances for continued negative impact are high.

Technical Analysis – Axie Infinity Price in a Clear Downtrend

Axie Infinity is in a clear bear trend on the day chart. From the 1-day chart, it is clear that stronger selloffs are following every slight rebound. This indicates that there are so many sellers that bears who expect even lower prices are sold off any bounce. The current key level to watch is the monthly low of $3.22. If this support is broken, then Axie Infinity could drop to prices below $3 in the day.

However, there is a scenario where Axie Infinity rebounds. In the financial markets, a trader’s loss is another’s gain. Though the risk of catching a falling knife remains strong, there are signals that the market could rebound. For instance, Axie Infinity is forming a triangle pattern on the day chart. This could be an indicator that it is hitting oversold territory.

If a rebound pushes the price through the 48-hour high of $4.01, then a rally to prices as high as $6 could follow. This would likely be pegged on Bitcoin’s price action. If Bitcoin starts consolidating and tries to push higher, altcoins such as Axie Infinity may follow. Overall, caution remains the overriding sentiment.

Recap

Axie Infinity is currently being corrected double-digitly. This correction is driven by macro factors, key among them being the trade war that kicks off today. With affected countries expected to retaliate, money will likely flee high-risk assets even further. This makes the case for even further losses for Axie Infinity in the short to medium term.

Overall, this is a challenging time for Axie Infinity and other altcoins, considering the shifts in global trade and the uncertainty surrounding crypto policies. If there is an ongoing selloff, the possibility for Axie Infinity to drop below $3 would not be out of the question.